Revamp of 650,000 sq ft eyesore ahead after Manchester’s biggest mixed investment deal
North West specialist Bruntwood is planning one of Manchester’s largest redevelopments after buying the 650,000 sq ft Piccadilly Plaza this week.
Bruntwood paid Piccadilly Plaza Partnership a joint venture between Portfolio Holdings, Apollo Real Estate and Property Mezzanine Partners £65m for the 2.5-acre island site.
The site sits to the south-west of the Exchange Square regeneration area, with Argent’s 1 Piccadilly scheme on the eastern side, and includes the 240,000 sq ft Jarvis Piccadilly hotel and health club, a 215,000 sq ft office tower and 80,000 sq ft empty podium area, as well as retail and vacant land.
Architect Gaunt Francis will modernise the 29-storey 1960s tower in Piccadilly Gardens, which is mostly occupied by the government on leases to 2008. A three-storey, 30ft-wide pedestrian mall will connect Piccadilly Gardens and York Street, leading to a new entrance to the offices, flanked by upmarket shops. Bruntwood plans to start on site next spring.
Chief executive Chris Oglesby said: “This marks a new beginning for Piccadilly Plaza, fully integrating it into the regenerated Piccadilly Gardens. Piccadilly Plaza is a well-designed building which has suffered years of neglect.”
Bruntwood owns over 20% of the city-centre office portfolio of Manchester and specialises in transforming neglected 1960s buildings. Oglesby added: “We have a team in place that will work closely with the city’s planners, to deliver a scheme that will significantly enhance Manchester’s skyline. We will ensure that the building never deteriorates to its current state.”
A leisure centre, designed and developed by Portfolio for David Lloyd, will also be included. David Lloyd has signed up for the building, but it has not been fitted out and the operator may be persuaded to surrender its lease.
Paul Parkinson, chief executive of Portfolio, said: “We are delighted that Bruntwood will complete such an ambitious and overdue scheme.”
Franc Warwick and Norton Rose advised Piccadilly Plaza Partnership. King Sturge and DLA advised Bruntwood.
